Rising air fares: NCAA denies complicity
…Says charges are subject to market forces
Biodun Akomolafe
Following the allegations that the Nigerian Civil Aviation Authority (NCAA) authorised the recent increase in the air fares airline operators in the country charge, the regulatory authority has washed clean its hands from the allegations, insisting that air fares and sundry charges are subject to proper scrutiny even as they are subject to market forces.
Dismissing its involvement in the recent increase in airfare, NCAA claimed that all airlines’ tariffs for their services including fares, rates, add-on charges or terms and condition of service are fully liberalised.
According to the management of NCAA,” air fares and sundry charges have been statutorily deregulated and subjected to market forces”.
The agency in a statement signed by its general manager public relations, Sam Adurogboye stated that all air carriers or its agent are expected to: “File with the Authority, a tariff for that service showing all rates, fares and add-on charges, including the terms and conditions of free and reduced rate transportation for that service, as specified in IS.18.14.1.1.
Obtain approval from the Authority to introduce and or increase add-on charges or surcharges such as fuel, internet booking, insurance, security and similar surcharges, prior to implementation”.
Adurogboye explained that section 18.14.1.2. of the Nigerian Civil Aviation Regulations (Nig.CARs) says all tariffs are required to be filed of 18.14.1.1 and shall be done at least seven (7) days before the rates come into effect, except in the case of matching an existing rate for which no prior notification is required.
He said the NCAA will therefore approve the fares accordingly.
“Prior to the approval, all fares filed with the Authority are subjected to Breakeven Analysis and this continues intermittently.
“This analysisis is to curb anti-competitive pricing and to ensure that fares are not too low as to impact on safety arising from inability to carry out prerequisite maintenance on their aircraft.
On the other hand, NCAA will similarly intervene if the fares are too high to avoid overpricing that will deny the teeming passengers access to air transportation,” Adurogboye said.
He further explained that “in 18.14.1.4. If an air carrier that offers a service fails to apply the fares, rates, charges or terms and conditions of carriage set out in the tariff that applies to that service, the Authority may direct it to :-Take the corrective measures it considers appropriate; and pay compensation for any expense incurred by a person adversely affected by its failure to apply the fares, rates, charges or terms and conditions set out in the tariff”.
Based on this development, the NCAA has therefore advised all airline operators and stakeholders to discountenance the reports and continue to operate on the atmosphere of liberalisation and level playing field the federal government has put in place.
